Section 80P of the Income Tax Act

Income-tax Act, 2025: s.149

Section 80P of the Income-tax Act, 1961 corresponds to section 149 (Deduction in respect of income of co-operative societies) of the Income-tax Act, 2025.

Read section 149 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 80P is Totgars Co-operative Sale Society Ltd. v. ITO (322 ITR 283), cited in 1,283 of the 5,069 judgments on BharatTax that turn on this section.

Leading authorities on Section 80P

Totgars Co-operative Sale Society Ltd. v. ITO
322 ITR 283 · 2010 · Supreme Court
1,283
citing judgments

The interest income earned by a cooperative society from investing its surplus funds in fixed deposits with banks is not "derived from" its eligible business activities and is taxable as "income from other sources" under Section 56, thus not qualifying for deduction under Section 80P.

Pr. CIT v. Totagars
395 ITR 611 · 2017 · High Court
1,074
citing judgments

Interest income earned by a cooperative society from surplus deposits or investments held with a cooperative bank is not eligible for deduction under Section 80P(2)(d) of the Act.

Mavilayi Service Co-operative Bank Ltd. v. CIT
431 ITR 1 · 2021 · Supreme Court
999
citing judgments

Section 80P(4) serves as a proviso to Section 80P(1) and (2), excluding only cooperative banks that are cooperative societies and possess an RBI license for banking business. Its purpose is to exclude cooperative banks operating like commercial banks that lend money to the public.

State Bank Of India v. CIT
389 ITR 578 · 2016 · High Court
817
citing judgments

Income arising from a cooperative society's surplus funds invested in short-term deposits and securities is not attributable to the society's core activities and, therefore, is not eligible for exemption under Section 80P(2)(a)(i) of the Income-tax Act.

Pr. Commissioner of Income Tax and Anr. v. Totagars Cooperative Sale Society
392 ITR 74 · 2017 · High Court
762
citing judgments

Interest income earned by a cooperative society from its investments or surplus deposits with a cooperative bank is eligible for deduction under Section 80P(2)(d) of the Income-tax Act, 1961.

Co-operative Bank Ltd. v. CIT
384 ITR 490 · 2016 · High Court
631
citing judgments

Co-operative banks are not fundamentally different from co-operative societies, entitling them to claim deductions under Section 80P of the Income Tax Act, 1961, including for interest income treated as business income.

Tumkur Merchants Souharda Credit Cooperative Ltd. v. ITO
230 Taxmann 309 · 2015 · High Court
527
citing judgments

A cooperative society is eligible for deduction under Section 80P(2)(a)(i) if it is engaged in cooperative activities. It also clarifies the allowability of deduction under Section 80P(2)(d) for interest income received from investments made in cooperative banks, after duly considering the Supreme Court's decision in Totgars Co-operative Sale Society Ltd.

Citizen Co-operative Society Ltd. v. ACIT
397 ITR 1 · 2017 · Supreme Court
499
citing judgments

A co-operative credit society engaged in banking business with the general public, accepting deposits from non-members and advancing loans to non-members, is treated as a co-operative bank. Such a society falls under the exclusionary clause of Section 80P(4) and is not eligible for deduction under Section 80P(2)(a)(i).

Totgar's Co-operative Sale Society Ltd. v. ITO
188 Taxmann 282 · 2010 · Supreme Court
486
citing judgments

Interest income earned by a co-operative society from investments, particularly with co-operative banks, is not eligible for deduction under Section 80P as it is not attributable to the core business activities of the society and constitutes "other income", not "profits and gains of business".

CIT v. Andhra Pradesh State
200 Taxmann 220 · 2011 · High Court
348
citing judgments

Interest earned by a Co-operative Society from investing fixed deposits in banks is entitled to a deduction under Section 80P(2)(a)(i) of the Income-tax Act.

Judgments on Section 80P

Janki Vaishali Co-Operative Housing Society Limited, Mumbai vs. Commissioner of Income Tax(Appeal), Delhi

In the result, impugned order is upheld and appeal by the assessee is dismissed

ITA 944/MUM/2022[2018-19]Status: DisposedITAT Mumbai31 Oct 2022AY 2018-19

Bench: Shri Vikas Awasthyआअसं. 944/मुं/2022 ("न.व 2018-19) Janki Vaishali Co-Operative Housing Society Limited, Plot No.1521, Janki Vaishali, Juhu Church Road, Janki Kutir, Juhu, Mumbai 400 049. Pan: Aacaj-4400-A ...... अपीलाथ" /Appellant बनाम Vs. The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri Manoj Mahimkar ""तवाद" "वारा/Respondent By : Ms. Beena Santosh सुनवाई क" "त"थ/ Date Of Hearing : 03/08/2022 घोषणा क" "त"थ/ Date Of Pronouncement : 31/10/2022 आदेश/ Order This Appeal By The Assessee Is Directed Against The Order Of Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [ In Short ‘The Cit(A)’] Dated 10/03/2022 For The Assessment Year 2018-19. 2. The Assessee In Appeal Has Assailed The Findings Of The Cit(A) In Disallowing Assessee’S Claim Of Deduction U/S 80P(2)(D) Of The Income Tax Act, 1961 [ In Short ‘The Act’] On The Pretext That The Assessee Had Not Filed Return Of Income Within Due Date As Specified U/S. 139(1) Of The Act .

For Appellant: Shri Manoj MahimkarFor Respondent: Ms. Beena Santosh
Section 139Section 139(1)Section 143(1)Section 80Section 80ASection 80ISection 80PSection 80P(2)(d)

The Metturdam Tansi & Tamin Employees Co-Op Thrift Credit Society Limited, Salem vs. ITO, NFAC, Delhi

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 801/CHNY/2022[2018-2019]Status: DisposedITAT Chennai28 Oct 2022AY 2018-2019

Bench: Shri V. Durga Rao & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A. No.801/Chny/2022 िनधा"रण वष"/Assessment Year: 2018-19 The Metturdam Tansi & Tamin Vs. The Deputy Commissioner Of Employees Co-Op. Thrift Credit Society Income Tax, Central Processing Limited, No. 17, Sagunthala Complex, Centre, Bengaluru. East Main Road, Mettur, Salem 636 401. [Pan:Aaras2644E] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : None ""थ" की ओर से/Respondent By : Shri Ar V Sreenivasan, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 26.10.2022 घोषणा की तारीख /Date Of Pronouncement : 28.10.2022 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), New Delhi, Dated 05.08.2022 Relevant To The Assessment Year 2018-19. 2. Facts Are, In Brief, That The Assessee Is Co-Operative Credit Society, Filed Its Return Of Income On 31.03.2019, Admittedly Not Under Section 139(1) Of The Income Tax Act, 1961 [“Act” In Short]. The Assessee Has 2

For Appellant: NoneFor Respondent: Shri AR V Sreenivasan, Addl. CIT
Section 119Section 139(1)Section 80ASection 80P